Madras High Court
Sellammal .. First vs The Cor on 22 January, 2021
C.M.A.Nos.211,488,489,492,
493,616,635&748 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 22-01-2021
CORAM
THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM
CMA Nos.211, 488, 489, 492, 493, 616, 635 and 748 of 2015
And
CMP No.7502 of 2016
Sellammal .. First Appellant in CMA 211/2015
Sivasubramaniam .. Second Appellant in CMA 211/2015
Vijaya .. Third Appellant in CMA 211/2015
Jeyalaxmi .. Fourth Appellant in CMA 211/2015
Lakshmi .. First Appellant in CMA 488/2015
Selvi .. Second Appellant in CMA 488/2015
Manikandan .. Third Appellant in CMA 488/2015
Pappathi .. First Appellant in CMA 489/2015
Ambiga .. Second Appellant in CMA 489/2015
Nithish .. Third Appellant in CMA 489/2015
S.Kavitha .. First Appellant in CMA 492/2015
Minor S.Karthika .. Second Appellant in CMA 492/2015
Minor Nandhini .. Third Appellant in CMA 492/2015
P.Chinnapillai .. Fourth Appellant in CMA 492/2015
Mohana .. First Appellant in CMA 493/2015
Minor Gokul .. Second Appellant in CMA 493/2015
Kuppayee Ammal .. Third Appellant in CMA 493/2015
Pomma Naicker .. Fourth Appellant in CMA 493/2015
Rajan @ Laximanan .. First Appellant in CMA 616/2015
Pavayee .. Second Appellant in CMA 616/2015
Kanmani .. First Appellant in CMA 635/2015
Minor Navin Kumar .. Second Appellant in CMA 635/2015
1/14
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C.M.A.Nos.211,488,489,492,
493,616,635&748 of 2015
Minor Ram Kumar .. Third Appellant in CMA 635/2015
Rajathi .. Fourth Appellant in CMA 635/2015
K.Subramaniam .. Appellant in CMA 748/2015
vs.
1.The Correspondent,
Kongu Matric Higher Secondary School,
Velagoundampatti Post,
Tiruchengode Taluk,
Namakkal District.
2.M/s.United India Insurance Company Ltd.,
146-N, Kumar Complex,
Tiruchengode Post,
Namakkal District.
(R-1 set ex parte before the Deputy Commissioner
of Labour, Salem and hence the R-1 is given up
in this appeal)
3.Central Crime Branch,
Salem District represented by the Deputy
Superintendent of Police,
4.The Investigation Officer,
who is in-charge of the investigation of the case
in Crime No.13 of 2010.
5.The Present Deputy Commissioner of Labour,
Commissioner for Workmen's Compensation,
Salem.
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6.Mr.T.Soundarapandian
(R-3 to R-6 suo motu impleaded vide order of
Court dated 30.01.2015 made in CMA 211/2015)
7.Mr.Ravishankar,
Joint Commissioner of Labour,
DMS Complex,
Teynampet,
Chennai-6.
(R-7 suo motu impleaded vide order of Court
Court dated 16.12.2015 made in CMA 211/2015)
8.The Secretary to Government,
Labour and Employment Department,
Chennai-9.
(R-8 suo motu impleaded vide order of Court
Court dated 06.07.2015 made
in CMA 211/2015) .. Respondents in CMA 211/2015
1.V.Selvi
2.M/s.Royal Sundaram Alliance Insurance
Company Limited,
46, Whites Road,
Chennai-14.
(No relief claimed against R-1, hence R-1
is given up in this appeal) .. Respondents in CMA 488/2015
1.Ramayee
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C.M.A.Nos.211,488,489,492,
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2.M/s.United India Insurance Company Ltd.,
Divisional Office,
Dr.Sankaran Road,
Namakkal.
(No relief claimed against R-1, hence R-1
is given up in this appeal) .. Respondents in CMA 489/2015
1.P.Venkatachalam
2.M/s.United India Insurance Company Ltd.,
No.2, Dr.Sankaran Road,
Namakkal.
(No relief claimed against R-1, hence R-1
is given up in this appeal) .. Respondents in CMA 492/2015
1.K.Jayaraj
2.M/s.United India Insurance Company Ltd.,
No.2, Dr.Sankaran Road,
Namakkal.
(No relief claimed against R-1, hence R-1
is given up in this appeal) .. Respondents in CMA 493/2015
1.K.Kandasamy
2.ICICI Lombard General Insurance Company Ltd.,
Swarnamigai Plaza,
Omalur Main Road,
Near Bus Stand,
Salem-636 009.
(No relief claimed against R-1, hence R-1
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C.M.A.Nos.211,488,489,492,
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is given up in this appeal) .. Respondents in CMA 616/2015
1.R.Ravikumar
2.ICICI Lombard General Insurance Company Ltd.,
Swarnamigai Plaza,
Omalur Main Road,
Near Bus Stand,
Salem-636 009.
(No relief claimed against R-1, hence R-1
is given up in this appeal) .. Respondents in CMA 635/2015
1.S.Selvarani
2.ICICI Lombard General Insurance Company Ltd.,
Swarnamigai Plaza,
SF No.6/5, Block No.7, Ward-C,
Omalur Main Road,
Near Bus Stand,
Salem-636 009.
(No relief claimed against R-1, hence R-1
is given up in this appeal) .. Respondents in CMA 748/2015
CMA 211 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 15.09.2009 made in
W.C.No.113 of 2008 on the file of the Deputy Commissioner of Labour,
Salem.
CMA 488 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 15.09.2009 made in
W.C.No.395 of 2007 on the file of the Deputy Commissioner of Labour,
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C.M.A.Nos.211,488,489,492,
493,616,635&748 of 2015
Salem.
CMA 489 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 20.05.2010 made in
W.C.No.522 of 2007 on the file of the Deputy Commissioner of Labour,
Salem.
CMA 492 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 15.09.2009 made in W.C.No.60
of 2008 on the file of the Deputy Commissioner of Labour, Salem.
CMA 493 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 15.09.2009 made in
W.C.No.412 of 2008 on the file of the Deputy Commissioner of Labour,
Salem.
CMA 616 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 31.03.2010 made in
W.C.No.223 of 2007 on the file of the Deputy Commissioner of Labour,
Salem.
CMA 635 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 26.02.2010 made in
W.C.No.111 of 2008 on the file of the Deputy Commissioner of Labour,
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Salem.
CMA 748 of 2015 is preferred under Section 30 of the Workmen
Compensation Act, against the Award dated 30.11.2009 made in W.C.No.68
of 2008 on the file of the Deputy Commissioner of Labour, Salem.
For Appellants in CMAs 211,488
489,492,493,616,635&748 /2015, : Mr.Ma.P.Thangavel
For R-1 in CMAs 211,488,489,492,
493,616,635&748/2015 : Ex parte
For R-2 in CMAs 211,616&635/2015 : Ms.R.Srividhya
For R-2 in CMAs 488,489,492,
493&748/2015 : Mr.T.Ravichandran
For R-3 & R-4 in CMA 211/2015 : Mr.R.Aneesan
For R-5 in CMA 211/2015 : Mr.S.Jaganathan,
Government Advocate(CS).
For R-6 to R-8 in CMA 211/2015 : No Appearance
COMMON JUDGMENT
All these Civil Miscellaneous Appeals are filed raising the
common substantial question of law regarding the payment of interest to be
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C.M.A.Nos.211,488,489,492,
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granted under the Workmen Compensation Act.
2. Learned counsel for the appellants mainly contended that the
factum regarding the accident was established and the quantum of
compensation is also not disputed by the appellants. However, the interest
portion fixed by the Deputy Commissioner of Labour is erroneous and in
violation of the provisions of the Workmen Compensation Act.
3. The Deputy Commissioner of Labour fixed interest at the rate
of 12% per annum from the expiry of 30 days from the date of receipt of a
copy of the Award passed by the Deputy Commissioner of Labour.
4. It is contended that interest is to be calculated from the date of
accident.
5. This Court is of the considered opinion that Section 4-A(3)(a)
of Employees Compensation Act, direct that the employer shall, in addition
to the amount of arrears, pay simple interest thereon at the rate of 12% per
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annum or at such higher rate not exceeding the maximum of the lending
rates of any Scheduled Bank, as may be specified by the Central
Government, by Notification in the Official Gazette. Thus, the claimants are
entitled for 12% interest as per the above provisions of the Employees
Compensation Act.
6. The question arose whether 12% per annum interest is to be
calculated from the date of accident or the expiry of 30 days from the date
of passing of the Award.
7. In most of the cases, the Deputy Commissioners of Labour are
passing the Award stating that the Award amount is to be deposited by the
opposite party, within 30 days, failing which the interest at the rate of 12%
is to be paid from the date of expiry of 30 days. Such a conditional payment
of interest to the claimants is not contemplated under the Statute.
8. The conditional grant of interest cannot be acceptable in view
of the fact that the Statute provides interest at the rate of 12% per annum.
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Thus, 12% per annum interest is to be calculated from the date of cause of
action that is the date of accident and not from the date on which the period
of 30 days expiry from the passing of the Award.
9. The conditional grant of interest is not contemplated under the
Act. When the Act says 12% per annum is to be paid for compensation, then
the interest is to be calculated from the date on which the cause arose for
grant of compensation.
10. In every case, the cause arises on the date of accident and
soon after the accident occurred, the victim is entitled for compensation.
Thus, the interest is to be calculated from the date of accident and not from
the date of Award or the expiry of 30 days from passing of the Award. Such
conditional grant of interest is unacceptable and in all cases, the opposite
party, who lis liable to pay compensation, shall pay interest from the date of
accident, which would be the spirit of the Act.
11. The Employees Compensation Act is a Welfare Legislation.
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Thus, constructive interpretation is just and necessary. Once an employee
met with an accident and sustained injury or died, the Award of
compensation, the interest is to be paid from the date of accident because
the period of litigation is unknown to the parties. Some litigations are
disposed at the early stage and some at later stage. If interest is denied, it
will create inconsistency or anomaly amongst the workmen, which is
certainly not justifiable. Therefore, uniformity is to be followed for grant of
interest in all cases of compensation under the Employees Compensation
Act.
12. In order to maintain uniformity and by interpreting the
provisions constructively, this Court is of the opinion that interest is to be
paid as per Section 4-A(3)(a) from the date of accident and not from the
date of passing the Award or from the date of 30 days expiry from the date
of Award. Both the cases are erroneous and cannot be accepted at all.
13. Learned counsel appearing on behalf of the second
respondent-Insurance Company mad a submission that the Award amount
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had already been deposited. Thus, the balance interest portion is to be
calculated and the said difference amount alone is to be deposited and on
such deposit, the claimants are permitted to withdraw the balance interest
portion by filing appropriate applications before the Competent Authority
and payments are to be made through RTGS.
14. The second respondent-Insurance Company is directed to
deposit the difference amount of interest, within a period of twelve weeks
from the date of receipt of a copy of this common judgment.
15. As far as the minor claimants are concerned, their respective
portions of compensation are to be deposited in any one of the Natinalised
Bank at the Interest Bearing Deposit Scheme and the same is to be renewed
periodically till they attain the age of majority.
16. Accordingly, Awards dated 15.09.2009, 15.09.2009,
20.05.2010, 15.09.2009, 15.09.2009, 31.03.2010, 26.02.2010 and
30.11.2009 passed in W.C. Nos.113 of 2008, 395 of 2007, 522 of 2007, 60
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C.M.A.Nos.211,488,489,492,
493,616,635&748 of 2015
of 2008, 412 of 2008, 223 of 2007, 111 of 2008 and 68 of 2008 by the
Deputy Commissioner of Labour, Salem, stand modified and consequently,
Civil Miscellaneous Appeal Nos.211, 488, 489, 492, 493, 616, 635 and 748
of 2015 stand allowed in part. However, there shall be no order as to costs.
Consequently, connected miscellaneous petition is closed.
22-01-2021
Speaking Order/Non-Speaking Order.
Internet : Yes/No.
Index: Yes/No.
Svn
To
The Deputy Commissioner of Labour,
Salem.
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C.M.A.Nos.211,488,489,492,
493,616,635&748 of 2015
S.M.SUBRAMANIAM, J.
Svn
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493, 616, 635 and 748 of 2015
22-01-2021
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